Wednesday, September 02, 2009

What I'm Hearing...Customized Rewards

Over the next two months, I'm going to be on the road giving presentations on total rewards. Hopefully among my travels I'll come across some blog worthy discoveries!

One of the key themes of my presentations is that, in today's economy, employers can't rely solely on base pay and benefits to attract and retain employees. Rather, total rewards is the new focus. Total rewards includes pay and benefits, and also adds work/life balance, career advancement and development, and performance management and recognition into the mix. Moving forward, organizations will have to tap into all 5 of these areas, and customize their blends to meet employee needs, in order to be successful.

In light of this I found two separate conversations I had yesterday quite interesting. In both instances, the employees' employers were trying to do something nice to reward their employees by tapping into the 3 new elements of total rewards. In both cases, the employees knew how much their company was spending on the "reward," and would rather have had the cash. They felt like their companies were forcing the "reward" on them.

Customization of rewards is key moving forward. To be done right, however, customization must be done from the perspective of the employee, not the employer. To truly reward and motivate, the compensation elements must be what the employee wants and needs, not what I as your manager think you should have because I happen to like it.

How much rewards customization does your organization use? Is it truly customized? How will your rewards programs change moving forward?

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